June 2, 2025 City Council Meeting: Summary
Opening available on City Council - Notable resignation of Michael Behrmann
The Brief
We have summarized the entirety of the 2.15 hour City Council meeting below.
Planning Commission: Meets June 5 and June 19 at 5:30 PM. Zoom YouTube. These sessions will focus on Article 2 which is the key definition of zoning districts. The discussion on June 5th and 19th will concentrate on residential zones like the Bluff, Agricultural District, Glenn Drive and other remaining areas.
City Council: Meets Monday, June 16th at 7:00 PM. Zoom YouTube
Summary of the June 2 Meeting
Note: To help people better understand activity, we have moved to a combination of AI tools and edits to recast the transcript in a more readable form. Please let us know of any errors
The Harbor Springs City Council convened its meeting on June 2, 2025, addressing several critical topics, including significant infrastructure bonding, local hazard mitigation, public events, and internal city appointments. The meeting also included citizen comments and a notable resignation by a council member.
Video replay:
Key Discussions and Conclusions:
Meeting Called to Order
Meeting commenced.
Roll Call: Tom Graham, Jamie Melke, Kathy Motchall, Wendy Reeve, Michael Behrmann present. Quorum established.
Citizen Comments
Rick Tarchinski:
Recognized Michael Behrmann's last day and his extensive public service (school administrator, ZBA, Council, Planning Commission, Special Olympics).
Voiced concern about the departure of dedicated public servants (Michael Behrmann, Al Dika, possibly the Rondels), questioning the reasons for volunteers leaving Harbor Springs.
Carter Williams:
Recommended moving the bond issue from the consent agenda to the main agenda for fuller discussion, as the payment method for the $13 million cost was unresolved.
Suggested a full assessment of storm damage to identify needs for other planned projects.
Proposed a future agenda item for citizen feedback on storm response and improvements.
Stated again that bond issues should not be on a consent agenda.
Tif Easterwood:
Raised concerns about storm debris cleanup ending (City Manager newsletter stated May 31st), noting the storm was over 60 days ago and trees are still falling due to dry conditions.
Advocated for extending storm cleanup as an essential city service, especially for the aging population without means like pickup trucks.
Highlighted the rapid escalation risk of fires, referencing California experiences (Paradise, Santa Rosa, Dixie fire burning a million acres).
Requested consideration and feedback on the cleanup extension.
Police Department Announcement:
Open house at the police department tomorrow from 8:00 AM to 10:00 AM, sponsored by the Chamber of Commerce and 96.3 Light FM. Donuts and coffee provided.
Lucas VanderZee (Director of Public Works):
Clarified that the city still offers brush pickup on the third Tuesday of each month during the summer; this service will continue.
Garon Gopigian: (Historical Preservationist):
Reminded citizens about Preservation49740.com and the email Preservation49740@gmail.com for submitting old homes, buildings, or historic sites worthy of saving to build an inventory.
Agenda Approval
Question raised about the 4th of July art show event application on the consent agenda: the school district indicated "no" for an insurance provider, which may be incorrect.
Request to move the following items to discussion:
Emmet County Hazard Mitigation Plan
Electric system bond issue
4th of July art show (due to insurance inquiry and other questions)
Bond issue prioritized as the first discussion item.
Motion: Approve the agenda, moving the three specified items to discussion.
Vote: Kathy Motchall (Yes), Michael Behrmann (No), Wendy Reeve (Yes), Tom Graham (Yes), Jamie Melke (No). Motion carried 3-2.
Consent Agenda Approval
Remaining items: Minutes of the bills.
Motion: Approve the consent agenda.
Vote: All in favor (Aye). Motion carried.
Discussion Items
Electric System Bond Resolution
Authorization Sought: Up to $8 million for the electrical substation M119 Phase 3 and Phase 4 project.
Background:
Bond council Miller Canfield Paddock & Stone and Bond Advisors: Robert Bendzinski & Co. Municipal Finance Advisors prepared the resolution.
Clerk Whitaker and Attorney Jim Ramer reviewed with no concerns.
Process:
Upon resolution authorization, staff will seek bonds once project plans are finalized and bids are sought.
Bids will determine the actual bond amount needed.
Bonding for different project phases may occur at different times.
City Manager will select the bond with the lowest cost and best interest rates.
Bonds may be issued separately, potentially resulting in 2-3 smaller bonds totaling no more than $8 million.
Funds will be held in a separate, interest-bearing construction account; interest earned cannot exceed bond coupon rates. Projects must be completed within three years of starting the process.
Financial Details & Concerns:
Project cost components:
Substation/transmission line: $6.5 million.
M119 Phase 3 & 4: $1.5 million.
City reserves: $2.2 million. Using reserves could strain cash flow, especially if another event like an ice storm occurs.
Ice storm costs: Approximately $280,000 from the electric fund, total around $307,000-$370,000 (excluding regular staff time).
FEMA Funding Update (Matt Blythe, Emmet County Emergency Manager):
No guarantees for federal individual or public assistance for the recent ice storm.
State disaster fund (Section 19 funding) depleted for the year by the ice storm and downstate tornadoes.
Not advisable to expect federal or state aid at this point.
Matt Blythe commended for his critical role during the ice storm.
Necessity of Bonding: Council member Behrmann emphasized the need for the project, importance of a strong electric fund balance, and that rates have been kept low. Approach deemed "middle-of-the-road."
Rate Increases:
Public Comment (Carter Williams): An $8 million bond will require a 10 -12 % rate increase, not 3-5%. Council should determine the payment method before approving the bond. The project's graded job might not occur until 2026.
City Manager Response: Rate increase decision not immediately necessary because final bid costs are unknown. Rate adjustments typically made at year-end. Real estate purchase for the substation needs to close in mid July. The new council elected in November can make rate adjustments with more precise numbers.
Council Discussion: Rate adjustments will be a significant budget topic. Options need prompt review. A new rate study is possible; Utility Financial Services has been contacted. Final bids and bond interest rates are needed before setting new rates.
Bond Interest Rate: Estimated between 4% and 4.5%.
Timeline: Substation construction plans expected to be finalized in June/early July, then bid out (approx. 1 month). Bid selection likely in August, followed by securing bonds. Interest rates determined around August.
Public Comment (Maureen Kenney): Asked about funds from a previous 3-year electric rate increase and a long-standing monthly administrative fee intended for infrastructure.
Response by Nick Whitaker: The $2.2 million fund balance from those measures is intact and used for smaller annual projects. The current project's scale necessitates bonding. Significant rate increases (e.g., 12-15% immediately or phased 3-5% increases over several years) will be required.
Public Comment (Carter Williams): Stressed the importance of long-term capital planning, forecasting, and setting appropriate utility rates to avoid future shortfalls.
Motion: Approve the resolution authorizing bonding up to $8 million for the substation, transmission lines, and M119 Phase 3 & 4 rebuild.
Vote: Kathy Motchall (Yes), Jamie Melke (Yes), Michael Behrmann (Yes), Wendy Reeve (Yes), Tom Graham (Yes). Motion carried.
Wallstrom Marine Bottom Lands Lease
Request: Ward Walstrom sought approval for the transfer of a bottom lands lease for a small portion of the area previously leased by Walstrom Marine, following the sale of the business.
Details:
Lease pertains to Unit 3 on the provided diagram, inside the yacht basin.
No change in use of the leased area.
EGLE and city code require city review and approval for the transfer.
Motion: Approve the bottom lands lease conveyance to Ward Walstrom.
Vote: Wendy Reeve (Yes), Jamie Melke (Yes), Tom Graham (Yes), Kathy Motchall (Yes), Michael Berhmann (Yes). Motion carried.
Kiwanis Park Project Building Alternatives
Parks Board Recommendation: Direct staff to investigate feasibility and costs for alternatives to the Kiwanis Park Building renovations project, including modular or new construction.
Background:
City has a $500,000+ grant from the Petoskey Community Foundation for Kiwanis Park improvements, including building renovation. Previous DNR grant application was unsuccessful.
Current building, constructed in the 1970s as a community project, is not fully up to code (grandfathered). Renovations would address ADA accessibility and some electricals but not bring it fully to code. A new modular building would be to code.
Architect is under contract for renovation designs; preliminary designs are complete ($3,000-$4,000 spent of a potential $10,000 contract).
Current renovation plan includes indoor/outdoor restrooms, new windows, light landscaping, deck, and a kitchenette.
Concerns & Considerations:
Public sentiment regarding potential removal of the historic, community-built Kroll Hole (named after Ed Kroll).
Cost-effectiveness: Whether $500,000 is better spent on renovating an old building versus a new, potentially more functional or larger, code-compliant structure.
Building is used for rentals (parties, graduations), city events (sledding, workshops). Current rental is a $100 refundable deposit, not a revenue generator.
Existing building's roof replaced with metal around 2000. It has electric heat and a concrete slab foundation.
Public Comments:
Danny Rotert (Parks Board Vice Chair): Parks Board unanimously requested staff time to gather more information on renovation costs (architect plans/costs not yet seen) and modular options to ensure due diligence with the $500,000 grant.
JR Elliott: Inquired about grant stipulations. Noted local manufactured home providers offer comprehensive services. Questioned the non-revenue aspect if significant funds are invested.
Dawson Moore (User): Praised Kiwanis Park as a valuable community asset. Highlighted the current building's charm, functionality for events, and its role as an affordable venue. Concerned a modular building might lack character.
Amy Woods (Ed Kroll's granddaughter): Emphasized the historical significance of the Kroll Hole, its role in the city receiving the All-America City Award in 1976. Stated razing it would cause public outcry and compared its importance to other historical landmarks. Will submit a letter with historical details.
Garon Gopigian: Suggested private events should at least cover city costs.
Audrey Chapman: Noted the popularity of Kiwanis Park events and stated the current building is not large enough to support many public events.
Council Discussion: Desire to make the most economically sensible decision. A new building might offer better long-term value than renovating a 50-year-old structure.
Motion: Staff and/or the Parks Board to look at the best alternatives for using the $500,000, including the current remodel plan or a new structure.
City Manager & Staff will bring back cost ranges for options. Bidding on a $500,000 project may not be highly competitive.
Vote: Michael Behrmann (Yes), Jamie Melke (Yes), Tom Graham (Yes), Kathy Motchall (Yes), Wendy Reeve (Yes - after clarification that all options would be explored). Motion carried.
Events on Public Property Policy Review
Background: Council requested a review of the current policy. City Manager provided the current policy and examples from neighboring municipalities.
Council member Melke's Points:
Current policy predates the Parks Board and full-time Parks Director.
Increase in events; current fees (e.g., $50) do not cover city costs (lawn maintenance, garbage).
Recommended Parks Board review: number of events, feasibility of private events, charges for events that close parks to the public, and overall costs.
Council member Motchall's Points:
Worth reviewing the process and application form. Other cities' policies offer good ideas.
Caution regarding charges for public property, as it should generally be available to residents.
Other Points:
Consideration of adding a requirement for fireproof tents.
Council member Behrmann: Private events closing off public resources should generate revenue for the city.
City Manager: Past discussions on Harbor Springs' uniqueness, where taxpayer money supports community services. Current policy has tiers for different event types (public, non-profit, private low impact; no for-profit events). Broad policy change could affect regular users. The 4th of July cited as an example of high city cost.
Council member Melke: Data needed on event trends, staff hours, and costs. Highlighted need for reciprocity if the city provides services (e.g., school charging city for facility use).
Outcome: Consensus to send the policy to the Parks Board for review of usage, event growth, costs, and to report back to Council with recommendations. No formal motion needed.
Acting City Manager Appointment
Reason: City Manager Victor Sinadinoski will be traveling internationally from June 12th to June 27th.
Recommendation: Appoint Lucas VanderZee, DPW Director (18 years with the city), as Acting City Manager to authorize emergency spending or decisions if needed.
Motion: Appoint Lucas
as Acting City Manager for the specified dates.
Vote: All in favor (Aye). Motion carried.
Emmet County Hazard Mitigation Plan
Background: City of Harbor Springs previously approved the plan in February 2017. The county, with Networks Northwest and the local emergency planning committee, has updated it (300+ pages). State and FEMA approved the update last month.
Purpose: Local approval required for city eligibility for FEMA grant funding for mitigation projects identified in the plan over the next five years.
Identified Local Projects/Hazards:
Maintaining sewer and water infrastructure.
Floodplain projects.
Potential flooding near the DPW building, involving property owned by Irish Boat Shop, the school, and the city. The "Fairview Shay drain floodplain" project aims to lower Fairview Road and the school bus garage driveway to allow natural water flow, potentially involving a swale through the Shay Elementary School playground. Engineering for the school's portion is largely complete. Project pending funding and coordination among the three entities.
Matt Blythe (Emmet County Emergency Manager): Explained the 3-year update process and need for local adoption.
Likelihood of FEMA Funds: Uncertain, depends on future federal government actions.
Consequences of Inaction (Fairview flood issue): Fairview Road acts as a dam, potentially directing floodwaters towards the school, residences, and Irish Boat Shop Storage.
Motion: Approve the attached resolution adopting the 2025 Emmet County Hazard Mitigation Plan five-year update.
Vote: Kathy Motshall (Yes), Wendy Reeve (Yes), Jamie Melke (Yes), Tom Graham (Yes), Michael Berhmann (Yes). Motion carried.
4th of July Art Show Event
Event Details: 49th annual event, 9:00 AM to 4:00 PM on July 4th. Approximately 80 artists anticipated.
Request: Use of Upper Zorn Park, with setup requested from 5:30 AM.
Concerns Raised: Early hours and insurance verification for the school district (organizer).
Clarification: Police typically provide an officer from 6:00 AM or 7:00 AM for setup organization and traffic.
Motion: Approve the application for the 4th of July Art Show.
Vote: Tom Graham (Yes), Michael Behrmann (Yes), Wendy Reeve (Yes), Kathy Motshall (Yes), Jamie Melke (Yes). Motion carried.
City Manager's Report
Shay locomotive arrived on Tuesday, May 27th.
Boardwalk donation letters mailed last week. Silent auction with donated items to be organized next month.
Ford Park driveway widening project is complete and looks good.
City increasing social media and internet presence.
Meetings Attended:
May 14: MPPA Kalkaska CT Project Committee meeting.
May 27: MPPA Energy Waste Reduction Public Act 229 Roundtable Discussion. This meeting addressed state mandates for energy waste reduction, with the City exploring whether to go with the state program or continue contracting with the MPPA to manage it.
Boardwalk Reopening: DPW Director Lucas VanderZee indicated that with spring cleanup completed, they will work on reopening the boardwalk this month, despite being about four weeks behind on other tasks like line striping.
Boards and Commissions
DDA Appointment
One DDA member resigned. Four applications received.
Mayor appoints, Council confirms.
Mayor Tom Graham nominated Bob Thoma.
Motion: Appoint Bob Thoma to the DDA.
Council member Behrmann noted Bob Thoma serves on the Parks Board (Treasurer) and questioned if other qualified candidates not currently on boards were available, aligning with past efforts to diversify board memberships.
Vote: Kathy Motshall (Yes), Jamie Melke (No), Wendy Reeve (Yes), Michael Berhmann (Yes), Tom Graham (Yes). Motion carried.
Board Updates
ZBA: Has not met.
Planning Commission: Has not met since the last council meeting but has a meeting scheduled for Thursday to continue discussion of Article 2, Zoning Districts, Part 2. Public input encouraged.
City Council Business
Michael Behrmann's Resignation
Councilmember Michael Behrmann formally announced his resignation from the City Council, effective at the conclusion of the current meeting.
He and his family are relocating to Houghton on June 11th.
He expressed heartfelt thanks to city residents, staff, administration, and his council colleagues.
Process for Appointing a New Council Person
City Manager Recommendation: Advertise the vacancy, accept applications (similar to board/commission appointments), and hold a special meeting, likely in early July, for the appointment. The appointee would serve the remainder of the term (approximately seven regular meetings).
Timeline:
Advertise in the Harbor Light, on the city website, and social media.
Aim for applications to be submitted by the end of June.
City Manager will coordinate with remaining council members to set a date for the special meeting before the regular July meeting.
Process agreed upon by consensus.
Transcript regarding appointment to City Council
Kathy Motchall:
I guess I have a question for the city manager and perhaps the consideration of the rest of the council regarding what process and when we will appoint or elect a new council person.
Victor Sinadinoski 02:10:19
Yeah, so there's multiple ways council can, the remaining council members can decide how to do this. I would recommend that we advertise and take applications, just like we do for boards and commissions, and then have a special meeting, probably in early July. We normally, we skip our first July meeting normally because of Fourth of July weekend, but we could have one meeting around that time. Advertising Harbor Light, whoever's going to fill the role would be filling it for, there'd be about seven regular meetings left that they would have to attend. So that'd be my recommendation.Victor Sinadinoski 02:10:51
If council wants to have a further discussion about the process. If they don't like that process, they'd be able to hold a special meeting or have a, at our next June 15th meeting and talk about different processes. In the past, when a member, I think, died on council, they formed a search committee, but with only seven regular meetings left, I think that would be a long process to form a search committee, and I think we have an application process that they didn't have back then, so I think that would be the best way to go forward.Victor Sinadinoski 02:11:21
There are other alternatives. You can look at previous years' election results, et cetera.Kathy Motschall 02:11:29
I'm sorry, but I can't remember how long, if we feel like we need to have a special meeting, by when do we have to announce that or vote on it so we fill the legal requirements.Victor Sinadinoski 02:11:43
You can decide to hold a special meeting, like you can decide the date and time of it now, but we have to post it 18 hours in advance of that, so you need to give us city staff some time to get it posted. We could just take applications.Kathy Motschall 02:12:03
How quickly do you think, I mean, how short a time frame is fair and reasonable for applications? I mean, assuming you can get out a word about that.Victor Sinadinoski 02:12:16
I'm assuming people have been thinking about this since Michael first mentioned that he would probably be retiring soon. So I think there's probably talk about it already. However, it probably would get into Harbor Light. I don't know if it could get into Harbor Light this Wednesday, but it could get into Harbor Light next Wednesday. We posted it on our website, social media. I think by end of June, you know, give yourself three weeks, four weeks, three weeks to get a candidate.Jamie Melke 02:12:42
I think the end of June is a great goal.Victor Sinadinoski 02:12:45
Yeah.Jamie Melke 02:12:47
And I think setting up a special meeting, even if that's the only agenda item, before our July whatever, 21st meeting, would be the best. Yeah. so that we have somebody there.Victor Sinadinoski 02:13:04
So what I can do is just tally the remaining council members on what's a good special meeting date, why, what we'll publicize that.
Public Comment on DDA Appointment Process (Karin Offield)
Inquired if the DDA had made any recommendations for the appointment, particularly regarding representation from the restaurant business.
Asked if council members had seen all applications (specifically mentioning Natalie Stackhouse) to ensure the best choice.
City Manager Response: Council received all applications (personal information is not publicized or shared with community). The city typically does not receive recommendations from boards on their own appointments, as it is the council's decision.